MCC leadership has been monitoring a steady decline in revenue and exploring strategies to ensure overall financial health for the denomination.

First Quarter 2018 financial reports submitted to the Governing Board in April 2018 demonstrated a deficit of over $110,000 USD (http://bit.ly/2P3JkG5). At the April 2018 Governing Board meeting, members recognized cuts were needed and began to consider options to reduce expenses and increase revenue. Current members on the Governing Board acknowledge that revenue expectations were overestimated, and Governors waited too long to address these issues.

A series of course corrections began in July 2018 when the Governing Board announced spending adjustments. Those are now in place, including changes in MCC staffing. The Governing Board approved a reduction in MCC’s current budget by $400,000 USD at its regular monthly meeting in July (http://bit.ly/2O0egdT)
. This amount was based on the reality that MCC’s current monthly income, which on average year-to-date is $100,000.00 USD, was only meeting payroll.

Key Governing Board Decisions and Outcomes to Date

Based on the Governing Board decisions resulting in the reduction of staff by five positions, the 2018 annual payroll decreased by 27%. Three staff members, including two directors, voluntarily submitted resignations. After identifying essential resources for churches and leaders, program viability, and crucial skill sets, two additional positions were eliminated. A reduction in payroll taxes due to fewer staff, reduced salaries and hours, and a small change in benefits combined to show a positive financial impact.

Cash Flow Trends Upward

Preliminary financial reports are starting to show the Income Statement moving in a positive direction. Based on expenses and projected income, it is reasonable to expect a positive cash flow in October through the end of the year.

Debts and Investments

Improved cash flow in the last 45 days has allowed small increments of funds to be used to reconcile MCC asset accounts and ensure sustainability of programs and projects. As cash flow continues to improve, additional payments will be made to nullify all deficits.

The Finance Committee, in collaboration with the Governing Board, is creating a plan to reconcile debts. This plan will also include a strategic financial plan for fiscal growth. Updates about this vital work will be shared when it becomes available.

Financial Audits

UFMCC finances are audited by an independent auditor in a two-year cycle. Each audit costs between $12,000.00 - $15,000.00 USD. For the current cycle, the 2014 audit was completed in 2017, and the 2015 audit has begun. Audits for the 2016 and 2017 cycle will begin in early 2019.

The initial 2018 budget was based on two premises: 2017 assessments and a robust donation effort for MCC’s 50th anniversary year. The assessments were close to what was projected, however, donations did not meet expectations.

Through reductions in staffing and associated costs (i.e. payroll taxes) outlined earlier, in addition to adjustments to 2018 travel expenses including the elimination of face-to-face leadership meetings and specific operational expenses, it is projected these changes will be sufficient through the 2019 calendar year.

Reporting Cycle

To ensure appropriate oversight and reporting, the Governing Board receives monthly financial reports generated by Operations Departmental staff. These reports are then reviewed by MCC’s Finance Committee, which is comprised of the Governing Board Treasurer and three qualified laity volunteers, including a CPA, from MCC churches. Following the Finance Committee’s review, and the addition of any recommendations, financial reports are presented to the Governing Board at its monthly meeting for approval. Additionally, the Governing Board is apprised of monthly and year-to-date data on revenue and expenses. The Governing Board also considers revenue and expense trends and how these, along with current realities, impact cash flow and how to best forecast and plan for financial stability.

Monthly and annual reports, including the annual budget, are posted on the website after approval by the Governing Board. Lay Delegates are especially encouraged to locate this information and provide reports to their churches. Reports can be located on the Governing Board finance page: https://www.mccchurch.org/how-we-work/finances/

2018 Financial Reporting

The Governing Board hosted a webinar in August, which was attended by over 150 people. Due to unexpected connectivity issues, the financial report was not presented. The Governors apologize that they were not able to provide the report as planned, and will strive to minimize technical difficulties in the future. In the interim, this update addresses some of the questions asked during the webinar. If a question has not been answered, please contact the Governing Board at GoverningBoard@MCCchurch.net.

APPOINTMENTS TO THE GOVERNING BOARD

Overview

As of 3 October 2018, the Governing Board continues to work through its timeline to appoint new members in October to fill vacant seats (UFMCC Bylaws V.E.4.e, http://bit.ly/2NiYaXH).

Seven (7) individuals applied for four (4) available positions. Two (2) clergy applied for one (1) vacant seat. Five (5) lay people applied for three (3) vacant seats.

The key skill sets needed at this time include experience in governance, polity, bylaws, financial management, and fund development.

Due to the number of applicants, the timeline for interviews, notification, and announcements has necessitated an extension of the appointment process by a few days. Below are the key dates to identify, qualify, and appoint members to the Governing Board.

20-28 September 2018

MCC Governing Board interviews select applicants.

29 September - 4 October 2018

Governing Board reviews interviews and selects appointees.

5 October 2018

Governing Board notifies applicants on status of appointment.

8 October 2018

Governing Board announces appointments.

Appointments to these positions will continue until General Conference 2019. Those who are appointed will have the opportunity to apply for the 2019 Governing Board slate.

Prayers are requested for the applicants and Governors as they discern together.

GENERAL CONFERENCE GOVERNANCE COMMITTEES NAMED

Moderator Nominating Committee

The Moderator Nominating Committee is responsible to recruit, qualify, and nominate a slate of candidates for the role of Moderator.

To provide input on what you are looking for in the skills and attributes of a Moderator, please complete the Moderator Nominating Committee survey, open through 6 October 2018. EVERYONE is invited to participate: https://www.surveymonkey.com/r/PVZ3QNN

Responses to unanswered questions will be sent via email. The timeline and other information about the committee’s work can be found on MCC’s website: http://bit.ly/2y4H1eA

Governing Board Nominating Committee

The Governing Board Nominating Committee is responsible to recruit, qualify and nominate a slate of candidates to fill vacant Governing Board seats.

Rev. Tijuana Gray, Reconciliation MCC, Grand Rapids, Michigan, USA

Leo Rosetti, MCC Rio de Janeiro, Rio de Janeiro, Brazil

Teresa “Terry” White, Imago Dei MCC, Glen Mills, Pennsylvania, USA

BYLAW AMENDMENT PROPOSAL PROCESS

Bylaws Team

The Bylaws Team is responsible to the Governing Board and seeks to ensure local churches are aware of the process for submitting Bylaw Amendment Proposals for consideration by the General Conference 2019 in Orlando, Florida, USA.

Founded in 1968, Metropolitan Community Churches(MCC) has been at the vanguard of civil and human rights movements by addressing issues of race, gender, sexual orientation, economics, climate change, aging, and global human rights. MCC was the first to perform same gender marriages and has been on the forefront of the struggle towards marriage equality in the USA and other countries worldwide. MCC recognizes a state of need around the world in the areas of human rights and justice, including the Lesbian, Gay, Bisexual, Transgender, and Queer communities. As people of faith, MCC endeavors to build bridges that liberate and unite voices of sacred defiance. MCC leads from the margins and transforms.